It appears that the global dairy market will provide good returns for the foreseeable future due to reduced global milk supply. This is as key Irish milk processors raised their milk prices by at least 2c/L this week.
The Agriculture and Horticulture Development Board’s (AHDB) confirmed that the world’s milk production recorded a year-on-year deficit in March 2022, with total milk deliveries across the key producing countries down 0.7% since 2021. On average, global daily milk deliveries were down 5.8m litres per day from March 2021 to March 2022.
This is as some of the main Irish processors announced an increased milk price for May milk.
Bad weather conditions impacted dairy milk production in countries such as Australia, New Zealand and the US, while Ireland which had mostly been in growth over the last year, was down 2.5% in milk production from March 2021 to March 2022.
Daily deliveries in the EU-27 were down 0.5%on last year and with declines in the key nations of the Netherlands (-2.5%), Germany (-1.4%) and France (-1.2%) counteracting annual growth in areas like Italy (+2.9%) and Poland (+1.8%).
Inflation is affecting farmers, processors and food manufacturers at every level. Market sentiment is becoming more challenged as rising costs affect all categories of goods and services, and the war in Ukraine still has far reaching impacts.